Posts Tagged iPhones

JC Penney , the mid-price US department store chain, invested heavily on digital initiatives last year. It is now at the edge of digital retailing.

Target and Walmart are also in the throes of an extensive investment programme into this area. Why?

In part, the enthusiasm reflects the lure of online sales growth – which continues to outstrip conventional sales – at a time when few retailers are investing in new store growth. But retailers are also responding to the second stage of the online revolution that began a decade ago.

In the first stage, many retailers ran their online e-commerce businesses as separate units. But three years after the first iPhone, the advent of “mobile connectivity” is profoundly shaking up the way retailers do business, not only online, but in their stores.

People are now making decisions on what to buy in the store with their mobile phones. As a result, the store experience is going to change.

Much of the initial attention has been focused on retailers embracing new digital marketing techniques aimed at mobile users, such as sending text messages, and using digital money-off coupons, and on steps to make their existing websites function on mobile browsers.

So retailers are now asking how do I manage my brand across all the channels that affect the consumer? Customers will expect to see the store merchandise also available online, at the same prices, and merchandised in similar ways.

Therefore retailers must create technology systems to co-ordinate prices, inventory and other elements.  The physical and digital experience now needs to be fully aligned. The digital infrastructure must now support every customer touch point..at home, in the car, in the store.

Retailers are forecasting this is where the battle for them will be won. Customers now use multiple channels to engage with retailers ..and the survivors will be those that have put themselves in a position to respond to them.